'A Tale Of 2 Stories': The Different Sides Of New Jersey's Office Market

New Jersey’s office market is making a comeback after a pandemic-induced slowdown — with Northern Jersey leading the charge. 

As 2025 came to a close, Northern Jersey saw positive absorption of more than 555K SF in just Q4 alone. Asking rents had a slight increase of 1.6%, and vacancy declined 90 basis points from the year prior. Leasing activity saw a 26% uptick from Q3 2025. 

But as with many office markets in the U.S., New Jersey is facing some strong headwinds. Overall, the state struggled with its leasing numbers, witnessing the lowest annual leasing on record — despite the steep increase in activity during Q4. Suburban offices continue to face quality and retention issues as premium assets with ideal locations see the most traction in the market. 

This market uncertainty hasn’t stopped industry players from being bullish on the sector, said David Wolfe, managing partner at Skoloff & Wolfe, a New Jersey-based law firm that represents property owners and developers seeking property tax relief. 

“While we do have continued sticky vacancy, we've also had relatively sticky occupancy,” Wolfe said. “Landlords who have invested in their properties and diligently attended to their property taxes have, and will continue to, succeed.”

Wolfe will speak at Bisnow’s New Jersey Office Conference in Holmdel, New Jersey, on May 5. Click here to register. 

Bisnow spoke with Wolfe to learn what the New Jersey office landscape looks like today, how Skoloff & Wolfe is pushing the industry forward, and what topics are expected to dominate conversations at the event. 

Bisnow: New Jersey's office market has shown some signs of stabilization, but maturing debt and market uncertainty haven't gone away. How are you seeing these dynamics play out in the deals crossing your desk?

Wolfe: We continue to see the New Jersey office market as a tale of two stories. You have both winners and losers. There are properties that are thriving, and there are properties that are struggling. There are properties that have momentum in terms of lease-up and location that the ownership has heavily invested in. On the other hand, there are areas where vacancy continues to be sticky and challenges continue on outdated products. 

There's not a single story when it comes to New Jersey office, and in our practice, we deal with both sides of the equation. 

Bisnow: Tell us about your role at Skoloff & Wolfe and what you're focused on day to day.

Wolfe: I am a property tax attorney and manage the property tax department at Skoloff & Wolfe. A fair amount of our work focuses on offices in New Jersey and the mid-Atlantic. I assist owners and developers in minimizing their property taxes by appealing their property taxes. I also work on office acquisitions, supporting brokers and potential buyers/sellers in positioning their properties and providing clarity on how their taxes may be impacted following an acquisition or disposition. 

Bisnow: What types of transactions and clients define your practice today?

Wolfe: In the office segment, we have an active practice, both in terms of private, institutional and public clients. We spend a fair amount of time working with capital market teams for our institutional sales. Most of the deals we work on are valued at $50M and above.

Bisnow: You’re speaking on a panel called Acquisitions, Financing, Maturing Loans & Leasing. What topics do you expect to dominate the conversation on this panel?

Wolfe: I anticipate a lot of discussion will be on the renewed and rigorous nature of underwriting that lenders are requiring and that buyers are performing. In our world, that means rigorous property tax analysis. As a result, we are spending more and more time working with lenders and buyers to help get these deals over the finish line. 

This topic is not solely a property tax issue. Whenever there's uncertainty in the market, there is a great desire to find as much certainty as you can on all of the components of a deal. You'll also hear about the continued uncertainty in the New Jersey market as a whole and some of the threatened property tax rate increases that are floating out there in some of our major markets, like the potential 20% property tax increase in Hoboken this year, and the $250M deficit in Jersey City — which are two of the markets that we spend a significant amount of our time counseling clients on.

Bisnow: What's the one thing you want attendees to walk away understanding about how to navigate this market?

Wolfe: Be brave.

While there is significant uncertainty, the New Jersey office market has been relatively stable for generations, and while we do have sustained vacancy, we've also had sustained occupancy. Landlords who have taken the time and invested in their properties — and who have paid close attention to their property taxes — have been successful in today’s market. You're going to hear from market participants that deal volume is up and that there's real appetite for office.

For more about Bisnow’s New Jersey Office Conference on May 5, click here. 

This article was produced in collaboration between Skoloff & Wolfe and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.